U.S. Secretary of State John Kerry says new Israeli settlement activity should not derail peace talks with the Palestinians.

Kerry said during a visit to Bogota, Colombia, on Monday that "the United States of America views all of the settlements as illegitimate." But he added that the issue of settlements is best resolved by solving the problems of security and borders during talks.

Israel Sunday approved building almost 1,200 new homes in occupied areas claimed by the Palestinians for a future state. They include parts of East Jerusalem and the West Bank.

Palestinian officials say the move is an attempt to undermine the peace process. An Israeli government spokesman says the new homes will be in areas Israel will likely keep in any peace deal.

Israeli and Palestinian negotiators are set to resume peace talks Wednesday in Jerusalem. U.S. negotiator Martin Indyk will also attend.

On Monday, Israel published the names of 26 long-held Palestinian prisoners it plans to release ahead the talks.

Most of the Palestinians to be freed were jailed in the late 1980s and early 1990s for murder and attempted murder of Israelis and suspected Palestinian collaborators.

Israel agreed to free 104 inmates in stages. But their release depends on the progress of the U.S.-backed peace talks. Opponents of the prisoner release call it a reward for terrorism.